EIM02770 - Employment income: incidental overnight expenses: example

An employee stays in a hotel for three nights as part of a business trip. Her employer reimburses the following personal expenses:


£

night 15.50
night 26.00
night 32.50
total14.00


The reimbursement by the employer can be made tax free under the incidental overnight expenses legislation. Although she was reimbursed more than £5 for each of the first two nights, the total reimbursement did not exceed £15 for the three nights, see EIM02730.